Durbin Interchange Amendment - not consumer friendly?

There is a very interesting article written by Bill Handel from The Raddon Report on March, 9, 2011 it starts:
There is movement afoot to address the issue of debit card interchange. Unless you’ve been on safari for the last three months, you are very much aware of the loud industry protestations resulting from the Federal Reserve’s Reg II, which was issued in December.

Click here to read the entire article.

The Durbin Amendment was meant to be consumer-friendly. Mr. Handel includes possible ways financial institutions could react that are actually very UNfriendly to consumers:
  • Reduce its full-time employee count by 18 people, an effective reduction of 11 percent. This assumes $4.5 million assets per employee and $65,000 in salary and benefit costs per employee. Or …
  • Lower its rate on deposit accounts by 16 basis points, or …
  • Impose a $6.08 per month fee on checking accounts with balances below $1,000. This assumes that 60 percent of checking accounts have balances of less than $1,000. Or …
  • Impose a monthly fee of $3.65 per debit card.
We encourage you to voice your opinion on the Durbin Amendment and other issues.

Click here to view a PDF document of Ohio congressional addresses, phone and fax numbers provided by the Ohio Credit Union League.

Comments

Post a Comment

Popular posts from this blog

Improving Financial Literacy

Image
Each year, the National Financial Educators Council releases a National Financial Literacy Test , which is taken by Americans of all ages, financial positions, and backgrounds. The test measures participants’ knowledge as it pertains to earning, saving, and growing their money.   As of 2020, the average score of 15- to 18-year-olds who took the test stood at 68 percent, just shy of a passing score. In fact, of the 60,813 people who have taken the test since it began in 2015, only 59 percent received a passing score of 70 percent or higher. Additionally, the National Financial Educators Council also released results that found that poor financial literacy contributed to Americans losing an average of $1,634 each in 2020. That is a cost of about $415 billion to the country at large.   Those numbers may seem a tad apocalyptic, but there is a silver lining. Younger generations of Americans appear willing and able to learn more about financial literacy. The National Financial Educ
Read more

Spring Cleaning Is For Finances, Too

Image
  There’s nothing quite like airing out your home from a long winter, scrubbing it down to a sparkly shine, and decluttering the mess that’s piled up. Deep cleans are meant for more than just your house, though. Your finances most likely need some spring cleaning, too. According to  Nerd Wallet , spring is a good time to “conduct a thorough review of your finances and address any neglected areas.” The first and easiest way to conquer that task is by updating your budget, which changes in different areas each year. It’s good to reassess spending habits at least once a year. Eaton Family Credit Union Chief Financial Officer, Kelly Slocum, notes, "Financial goals can change over time, particularly during pandemic years, so reevaluating them each spring is important. Everything from annual vacations to new jobs should be included in your list of financial goals." Other ways to clean up your finances this spring include reviewing your insurance coverage, services, and cutting unne
Read more

How to Save Money Wedding Planning in 2022

Image
If you are planning a wedding this year, it could be challenging. With high demand coming from a global pandemic, brides have limited options for everything from wedding dates to food to venues; it’s a true “wedding boom,” according to Brides . After more than a year of postponed and called-off weddings, the industry has seen an influx of weddings coming back as the world opens up again. As a result, the demand for every aspect of the industry is higher than ever. Tips for planning a wedding in 2022 Make decisions quickly – With everything from dresses to venues to flowers to food in high demand, be ready to make quick decisions. No one wants to rush these things, but it could prove worse to miss out on the best opportunities. If it seems like it will be a good fit, jump on it.   Prepare for inflated costs – Prices are high with the after-covid boom, so prepare to be open and flexible with vendors as they help you work within your vision and budget. Hire a wedding planner – Even
Read more